TRANSACTION PRIVILEGE (SALES) TAX  
GENERAL INFORMATION

City of Tempe Privilege (Sales) Tax  

The City of Tempe, and most other cities in Arizona, impose a Transaction Privilege (Sales) Tax on specific business activities just like the State of Arizona. The City tax is in addition to the tax imposed by the State. The City of Tempe tax rate is one and eight-tenths percent (1.8%) and is imposed upon the business.  A taxable business will need to get licensed with both the City of Tempe as well as obtain a license with the State of Arizona.  A list of the taxable activities within Tempe can be found at Taxable Activities

Note:  The City of Tempe and the State of Arizona maintain separate and distinct privilege (sales) tax codes.  As a result, there are certain situations and circumstances where the taxability of certain business activities is different between the two codes.

 

Tax Reporting Requirements  

Individuals applying for a Privilege (Sales) Tax license are required to report and pay Tempe's 1.8% privilege tax on their taxable revenue on either a monthly, quarterly, or annual frequency. Reporting frequency and license fee are based upon annual taxable revenue. 

Taxable Revenue

Reporting Frequency

License Fee

Application Fee

$0 to $4,999

Annual

$10

$20

$5,000 to $49,999

Quarterly

$25

$20

$50,000 or greater

Monthly

$50

$20


Privilege Tax Licenses must be renewed annually. The annual license renewal fees of $10, $25, or $50 are based upon the respective annual, quarterly, or monthly reporting frequencies. 


Tax Reports and Payment of Tax

A tax return is due even if you have zero receipts.  Mark the appropriate box, sign and mail in.


Please mail your tax report and payment to our processing center:
     City of Tempe
     Tax and License Division
     Forms Processing Center
     PO Box 29618
     Phoenix AZ  85038-9618

Account Statement
If you receive an Account Statement and have questions:
  
     Monthly filers whose account number ends in a 1, 3, 5, 7, or 9 call Hugh Washington at (480) 350-8678 or e-mail Hugh at hugh_washington@tempe.gov

     Monthly filers whose account number ends in 0, 2, 4, 6, or 8, call Valerie Patriquin at (480) 350-8514 or e-mail Valerie at valerie_patriquin@tempe.gov

    Quarterly or annual filers, call Kim Garlington at (480) 350-8512 or e-mail Kim at kim_garlington@tempe.gov .